Jobaaj Stories
In a much-needed relief to Payments giant Paytm, the RBI has allowed a 15-day extension to re-file for a payments aggregator licence after the same was 'rejected' last year.
With startups emerging as Payment Aggregators, the RBI announced in 2020 that all non-bank PAs needed to be licensed by it. Under such guidelines, all PAs, including Paytm Payments Services Ltd. (PPSL), applied for licences to continue operating as PAs.
Razorpay, Cashfree and the like received in-principle approval from the RBI, but PPSL was required to re-file its application for a licence by the RBI in November 2022. It was the first PA asked to re-file its application.
PPSL further clarified that the application was not rejected, but the RBI had asked it to re-file within 120 days to get a licence. Moreover, the same hadn't affected the company's existing business.
According to the RBI's letter, PPSL is being given 15 days to submit the application seeking a PA licence. In the meantime, the company cannot onboard new customers for PA services.
However, the company says that the event does not have a material impact on its business since it can continue serving its existing customers while continuing to onboard new customers for its offline segments such as the All-in-One QR, Soundbox and Card Machines.
The stock of One97 Communications Ltd., the parent company of Paytm and 100% owner of PPSL traded at around Rs 624.10 per share at reporting time.
- Aman Agarwal
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